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Kelle Fraser Michelle Merritt IMC 631 December 12, 2012

2013 Domino’s IMC Campaign Good & good for you!

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Discussion Points

• Analysis• Strategy• Evaluation • IMC Objectives

– Communication– Budget– Advertising Goals

• Consumer Promotions– Interactive & New Media– Support Programs

• B2B Strategy• Media Plan

– Integration

• Creative Brief– Logo & Tagline

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• QSR growth projection through 2017• Focus on value priced food options• Proven success of recipe improvement results in market share

increase• Domino’s consumer embracing innovation• Continued development of online and

mobile apps

Marketing Opportunity Analysis

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Communications Market Analysis

• Traditional media effective when coupled with Social Media• Co-branding opportunities such as America’s Dairy Farmer’s, Oreo

Cookies, NCAA March Madness• Multiple audience opportunity with:

– 18-24 year olds– 25-55 year olds– Segmentation within these audiences

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Competitive Analysis  Top Competitors Company

Type2011 U.S. Sales 

(x1,000)#US Stores Operates -  Franchises / #States 

MenuItems

Supplier

Domino’s Little Caesar’sPapa John'sPizza Hut†

Public -(NYSE: DPZ)†

$3,4000,000ǂ (20% delivery market share)†

394 - 4,513 / 51 †

Pizza, pasta, boneless chicken, wings, sandwiches, breads and desserts

Domino’s Pizza Supply Chain

Little Caesars Domino'sPapa John'sPizza Hut (Secondary: CiCi’s, Sbarro)†

Subsidiary $1,480,000ǂ 3,518‡ - / 51 Pizza, sandwiches, wings, breads, desserts and vegetarian options

Blue Line Food Service Distribution (Little Caesars-owned)

Papa John’s Domino'sLittle Caesar’sPizza Hut†

Public -(NASDAQ: PZZA) †

$2,195,841ǂ 625 – 3,001 / 51† Pizza, breadsticks, chicken strips, wings and desserts

PJ Food Service, Inc. QC Centers

Pizza Hut Domino'sLittle Caesar’sPapa John's

Subsidiary † $5,4000,000ǂ (15% market share)†

1,080 – 6,120 / 51 Pizza, breadsticks, wings, sandwiches, pasta and desserts

n/a, (not supplied by Pizza Hut or YUM! Brands, Inc.)

Sbarro Noble Roman's, Inc.Panda Restaurant Group, Inc.YUM! Brands, Inc.

Private † $420,000ǂ 611‡ - n/a / 48 Pizza, salads, pasta, full-course entrees and desserts

n/a

CiCi’s Domino'sPizza HutSonic Corp.(Secondary: Little Caesars, SbarroPapa John’s) †

Private † $516,000ǂ 573‡ - n/a / 34 Pizza, pasta, soup, salad, wings and desserts

JMC Restaurant Distribution, Inc.

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Healthy Menu Comparison

• Little Caesar’s – offers vegetarian pizzas– no animal or animal by-products in its dough

• Papa John's – Garden Fresh and Spinach Alfredo specialty pizzas contains the least calories

• Pizza Hut – Veggie lovers pizza

• Domino’s– None of their competitors offer any lower calorie or low-fat cheese or meat

options, making the changes to Domino’s menu a desirable strategy for capturing more health-conscious patrons.

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Opportunity Analysis

• Expanded menu with healthy alternatives• Continued viability of expansion based on market segmentation

– Online– Social media– Mobile

• Potential for new media based on – Product placement in films and television shows

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Target Market Analysis

• Adults age 18-24– Appeal to their forward thinking with apps, etc.– Capture loyalty now to carry forward through adult– Forward thinking group looking for

• Adults age 25-54– Most dedicated QSR consumer– Population growing– Eager to try a wide range of menu

choices

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Customer Analysis

• Age: 18-24 and 25-54 year-olds– 18-24 concerned with convenience and taste– 25-54 healthy alternatives for family and value pricing

• Households with children– 11% more likely to have purchased pizza last 30 days

• Income: 75-150K• Buyer Behavior

– Value, upscale and healthier menu choices

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Market Segmentation Strategy

• Health conscience parents– Choices of low-fat milk & cheese, fruit, non-fried chicken

• Variety menu expansion– Include salads, locally grown ingredients, low-fat

• Gluten free– Number of people purchasing has skyrocketed

• Technology seekers– Appeal to those looking for quick and convenient

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Corporate Strategies

Increase market share and sales• Expand menu with suitable products desired across market segments• Engage consumers through diverse media channels that reach them

where they live• Heighten the visibility of new menu

platform and focus on items unique to Domino’s brand

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Corporate Image Strategy

• Interested in consumer feedback– Building a sense of customer ownership– Variety of communication avenues

• Present image of – Quality– Healthy options– Value conscience– Convenience

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Brand Strategy

• Domino’s cares about consumer opinions• Domino’s is more than just pizza• Something for everyone• Positioning continues and expands

– differentiation from rivals and competitors Pizza Hut and Papa John’s– Focus on innovation and technology that adds convenience

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Distribution Strategy

• The main partner in the B2B distribution strategy are the franchises.• Expansion and continued management of own ingredient supply

chain• Customers receive product via

– Delivered by Domino’s driver– Pick up

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Evaluations & Analysis

• Crispin Porter + Bogusky (CP+B) leads– Image analysis and advertising impact– Positioning and consumer promotions analysis

• Domino’s will evaluate– Sales– Cost– ROI

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IMC Objectives

• Increase market share by 10%• Build brand loyalty in target audience• Facebook “Likes” from 7.5M to 9M• Tweets mentioning Domino’s increased by 10%• Increase satisfaction scores by 15%• Engagement with consumer increased

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Communication Objectives

Target audiences will need to • Think

– Of Domino’s as more than just pizza

• Feel– The desire

• Do– Order food item from Domino’s

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Consumer Promotions

Focus on new healthy alternative menu selections• Feedback encouraged via social media• New recipe testing• Sampling• Price-offs• Coupons• Contests and Sweepstakes

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Interactive and New Media

• Seek new innovations to serve customers– Pizza tracker has had huge success– Augmented reality

• “Is it good?” video reviews via Facebook & Twitter• More involvement with other social

– Instagram– Tumblr– Pinterest

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Supporting Programs

Creating engagement opportunities with consumers• Sponsorships and Events

– Focus on 18-24 year olds

• Database Programs• Direct Marketing• Permission Marketing• Loyalty Programs

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B2B Strategy

• Focus on increased and effective communication– Updated B2B website with easy access to needed information and marketing

materials

• Nurture existing business relationships– Acknowledge partners in various B2B communication

• Pursue new partnerships – with local and regional farmers– Approach Heart & Diabetes associations

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Integration

Television ad will drive customers online and to Other forms of media which will solidify and support the message by extending reach.

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Creative Brief

• Target audience 18-24 and 25-54 years old• Key consumer benefits

– New, tastier menu– New healthier choices on menu– Variety of menu items, not just pizza anymore

• Strategy focuses on increased customer engagement• Slogan “For Friday night with family or with friends make

it Domino’s: Good and good for you.”

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Logo & Tagline

“For Friday night with family or with friends, make it Domino’s. Good and good for you.”

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Kelle Fraser Michelle Merritt IMC 631 December 12, 2012

Appendices

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Advertising Design

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Evaluation Programs

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Total IMC Budget

 Digital  $ 10,000,000 

Broadcast $ 6,500,000

Social Media $ 4,000,000

Direct Marketing $ 2,000,000

Newspaper $ 1,500,000

Billboard $ 1,000,000

Sponsorships $ 1,000,000

Total  $ 26,000,000

IMC Allocations

Consumer

24,750,000

Distribution Channel

12,000,000

Business-to-business 1,000,000

Total

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Media Plan

• Budget allocation spread across entire year • Focus on TV and interactive, supported with social and other media

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The QSR 50 Pizza/Pasta Segment

SEGMENT RANK 

COMPANY/CHAIN NAME 2011 U.S. SYSTEMWIDE SALES (MILLIONS)

2011 U.S. AVERAGE SALES PER UNIT (THOUSANDS)

NUMBER OF TOTAL UNITS IN 2011

TOTAL CHANGE IN UNITS FROM 20101 Pizza Hut $5,500.0 $875.0 7,600 58

2 Domino’s Pizza* $3,437.9 $679.0 4,907 -22

3 Papa John’s $2,213.6 $786.0 3,001 130

4 Little Caesars* $1,480.0 $465.0 3,518 305

5 Papa Murphy’s $695.9 $559.5 1,283 42

6 CiCi’s Pizza $516.0 $895.4 573 -21

7 Sbarro $420.0 $690.0 611 -70

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Pizza/Pasta Segment

SEGMENT RANK COMPANY/CHAIN NAME

2011 US SYSTEM WIDE SALES IN MILLIONS

2011 US AVERAGE SALES PER UNIT (THOUSANDS)

NUMBER OF TOTAL UNITS IN 2011

TOTAL CHANGE IN UNITS FROM 2010

1 Pizza Hut $5,500.0 $875.0 7,600 58

2 Domino’s Pizza* $3,437.9 $679.0 4,907 -22

3 Papa John’s $2,213.6 $786.0 3,001 130

4 Little Caesars* $1,480.0 $465.0 3,518 305

5 Papa Murphy’s $695.9 $559.5 1,283 42

6 CiCi’s Pizza $516.0 $895.4 573 -21

7 Sbarro $420.0 $690.0 611 -70

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References• Barrett, L. (December 2012) PMQ Pizza Magazine - Pizza power report 2013. Retrieved on December 10, 2012 at

http://www.pmqmag-digital.com/pmqmag/201212#pg24• Bertoldi, M. (August 2010). The key to Old Spice’s social media success. Michaelbertoldi.com. Retrieved on November

25, 2012 at http://michaelbertoldi.net/the-key-to-old-spices-social-media-success-a-foundation-in-traditional-media/• Bplans.com. 2012 Pizzeria franchise business. Retrieved on November 2, 2012 at

Planhttp://www.bplans.com/pizzeria_franchise_business_plan/market_analysis_summary_fc.php#.UJQ2B4Y3EXU• Centers for Disease Control and Prevention. 2012. Overweight and obesity facts. Retrieved on November 17, 2012 at

http://www.cdc.gov/obesity/data/facts.html• CiCi Enterprises, LP. 2012. Bright slice program. Retrieved December 10, 2012 at http://www.cicispizza.com/in-the-

community/bright-slice-program• Domino’s Pizza, LLC. 2012. General menu. Retrieved December 9, 2012 at

https://order.dominos.com/en/pages/order/menu.jsp#/menu/category/all/• Dominosbiz.com. 2012. Domino’s around the world. Retrieved November 2, 2012 at

http://www.dominosbiz.com/Biz-Public-EN/Site+Content/Secondary/International/• Domino’s Investor Relations. 2011. Annual Report. Retrieved November 3, 2012 at http://

phx.corporate-ir.net/phoenix.zhtml?c=135383&p=irol-reportsannual • Giandelone, E. 2011. Mintel – Pizza restaurants – US – December 2011. Retrieved December 9, 2012 at

http://academic.mintel.com.ezproxy.emich.edu/display/543324/?highlight=true#search_this_report

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References• Little Caesar Enterprises, Inc. 2012. Pizza and products menu. Retrieved December 9, 2012 at

http://www.littlecaesars.com/pizza/products.asp• Mintel. (December 2011). Attitudes toward pizza restaurants – US. Retrieved on December 11, 2012 at EMU Library.• Mintel. (June 2012). 'Setting example' is most effective way to get kids eating healthily. Retrieved on November 12,

2012 at EMU Library.• Mintel. (August 2012). Marketing to Millennials – US. Demographic Characteristics. Retrieved on November 12, 2012

at EMU Library.• Mintel. (September 2012). Quick service restaurants – US – September 2012. Retrieved on October 30, 2012 at

http://academic.mintel.com.ezproxy.emich.edu/display/636769/ • Morrison, M. (August 14, 2012) Domino's revamping stores, drops 'pizza' from logo AdAge.com. Retrieved November

8, 2012 at http://adage.com/article/news/domino-s-revamping-stores-logo/236680/• Nguyen, A. (July 27, 2012) Domino's pizza hits unprecedented $1 billion In U.S. digital sales In one year, thanking

customers with week-long 50% off pizza online offer. Computerworld, UK. Retrieved on November 9, 2012 at http://www.thestreet.com/story/11575882/1/dominos-pizza-hits-unprecedented-1-billion-in-us-digital-sales-in-one-year-thanking-customers-with-weeklong-50-off-pizza-online-offer.html

• Oches, S. (August 2012). The QSR 50 Pizza/Pasta Segment. The top pizza and pasta brands in quick service. Retrieved December 8, 2012 at http://www.qsrmagazine.com/reports/qsr50-2012-pizza-segment-breakdown

• Papa John's International, Inc. 2012. Papa John's Non-profit charity involvement. Retrieved December 8, 2012 at http://www.papajohns.com/about/non_profit.shtm

• • Papa John's International, Inc. 2012. Welcome to Papa John’s online ordering menu. Retrieved December 8, 2012 at

http://order.papajohns.com/menu.html• • Pizza Hut, Inc. 2012. Pizza Hut. Retrieved December 9, 2012 at http://www.pizzahut.com/• • PizzaMarketPlace.com (January 16, 2012) Restaurant industry’s 2012 trends shaped by demographics nutrition.

Retrieved on November 1, 2012 at http://www.pizzamarketplace.com/article/189200/Restaurant-industry-s-2012-trends-shaped-by-demographics-nutrition

• • PizzaMarketPlace.com. (October 25, 2012) Gluten-free market jumps 28 percent in four years. Retrieved on

November 1, 2012 at http://www.pizzamarketplace.com/article/202685/Gluten-free-market-jumps-28-percent-in-four-years?rc_id=312

• • PizzaMarketPlace.com. (October 31, 2012) Restaurant consumers increasingly interested in technology. Retrieved on

November 3, 2012 at http://www.pizzamarketplace.com/article/202955/Restaurant-consumers-increasingly-interested-in-technology?rc_id=312

• • PizzaToday.com (October 23, 2012) Pie Five Co. introduces gluten-free crust. Retrieved on November 2, 2012 at

http://www.pizzatoday.com/magazine/2012-october-pie-five-co-introduces-gluten-free-crust• • PR Newswire. 2012. The Street. Domino's Pizza reinventing itself on the road, asking consumers to help design the

ultimate delivery vehicle. Retrieved November 23, 2012 at • http://www.thestreet.com/story/11658897/1/dominos-pizza-reinventing-itself-on-the-road-asking-consumers-to-help-

design-the-ultimate-delivery-vehicle.html• • QSR Magazine. 2012. INDUSTRY NEWS. Domino's handmade pan pizza heats up with sampling event. Retrieved

November 23, 2012 at • http://www.qsrmagazine.com/news/dominos-handmade-pan-pizza-heats-sampling-event• • QSR Magazine. 2010. INDUSTRY NEWS. The Secrets to Suggestive Selling• Retrieved November 24, 2012 at http://www.qsrmagazine.com/news/secrets-suggestive-selling• • QSR Magazine. 2008. INDUSTRY NEWS. YUM! Recognizes top suppliers. Retrieved December 10, 2012 at

http://www.qsrmagazine.com/news/yum-recognizes-top-suppliers• • Sbarro, LLC. 2012. Our Food. Retrieved December 10, 2012 at http://sbarro.com/ourFood/ourFood.php• • Wolf, B. 2012. Fair fowl - operators build multiple sandwich flavors atop turkey.• Retrieved November 15, 2012 at

http://www.qsrmagazine.com/menu-innovations/fair-fowl?utm_campaign=20121116&utm_source=jolt&utm_medium=email

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References• Papa John's International, Inc. 2012. Welcome to Papa John’s online ordering menu. Retrieved December 8, 2012 at

http://order.papajohns.com/menu.html• Pizza Hut, Inc. 2012. Pizza Hut. Retrieved December 9, 2012 at http://www.pizzahut.com/• PizzaMarketPlace.com (January 16, 2012) Restaurant industry’s 2012 trends shaped by demographics nutrition.

Retrieved on November 1, 2012 at http://www.pizzamarketplace.com/article/189200/Restaurant-industry-s-2012-trends-shaped-by-demographics-nutrition

• PizzaMarketPlace.com. (October 25, 2012) Gluten-free market jumps 28 percent in four years. Retrieved on November 1, 2012 at http://www.pizzamarketplace.com/article/202685/Gluten-free-market-jumps-28-percent-in-four-years?rc_id=312

• PizzaMarketPlace.com. (October 31, 2012) Restaurant consumers increasingly interested in technology. Retrieved on November 3, 2012 at http://www.pizzamarketplace.com/article/202955/Restaurant-consumers-increasingly-interested-in-technology?rc_id=312

• PizzaToday.com (October 23, 2012) Pie Five Co. introduces gluten-free crust. Retrieved on November 2, 2012 at http://www.pizzatoday.com/magazine/2012-october-pie-five-co-introduces-gluten-free-crust

• PR Newswire. 2012. The Street. Domino's Pizza reinventing itself on the road, asking consumers to help design the ultimate delivery vehicle. Retrieved November 23, 2012 at http://www.thestreet.com/story/11658897/1/dominos-pizza-reinventing-itself-on-the-road-asking-consumers-to-help-design-the-ultimate-delivery-vehicle.html

• QSR Magazine. 2012. INDUSTRY NEWS. Domino's handmade pan pizza heats up with sampling event. Retrieved November 23, 2012 at http://www.qsrmagazine.com/news/dominos-handmade-pan-pizza-heats-sampling-event

• • QSR12/12/12